Posts By Eric

Seven Reasons To Hate Gold As An Investment

Over the past few years, pretty much every investor has become familiar with gold. The shiny precious metal has surged in price and has managed to hold strong while broad indexes have slipped, highlighting its appeal as a diversification agent and safe haven investment. This has prompted many investors to ramp up their allocations to the space in order to take advantage of these favorable trends and lead their portfolios to broad gains. After all, gold-backed ETFs such as IAU have seen tremendous gains over the past few years including double digit returns in the year-to-date period and more than a 165% surge in the past five year period, figures that far outpace similar investments in the S&P 500 over the same time frame [see also Three Reasons Why Gold Is Overvalued].

Posted in Asset Allocation, Commodity ETFs, Exclusive, Gold, Investment Vehicles, Precious Metals | Tagged , , , , | 25 Comments

Crude Oil Guide: Brent Vs. WTI, What’s The Difference?

Arguably, the most important commodity in the world today is crude oil. The product and its derivatives made their way into virtually every application of modern life from transportation to plastics. This vital commodity also dominates politics in many parts of the world and ensures that some top producing nations have outsized influence on the world stage. In light of this, many might assume that most investors know everything about the product and how it trades around the globe. However, that is not the case, as there are several misconceptions about the various types of oil and how this commodity is priced [see also USA Oil Reserves: The World’s Largest?].

Posted in Brent Oil, Commodity ETFs,, Energy, Exclusive, WTI | Tagged , , , , , | 54 Comments

Can You Do Better Than GDX In The Gold Mining Space?

Commodity investors should rejoice over the recent growth in the ETF industry, as a number of new products have hit the markets in recent months offering a wide range of ways to target the commodity space. These new ETFs allow investors to slice and dice the market into very granular segments with funds targeting everything from rare earth metals to farming. This allows investors to target only the sector of the commodity world that they feel offers the best risk/return profile, resulting in exposure that can conform more closely with investment objectives.  

Posted in Commodity ETFs, Exclusive, Gold, Precious Metals | Tagged , , | 5 Comments

ProShares Debuts Leveraged Natural Gas ETFs

This article originally appeared on ProShares, the largest issuer of geared ETFs that has made a push into the alternatives space, adding two more products to its lineup late last week. The new Ultra DJ-UBS Natural Gas (BOIL) and UltraShort DJ-UBS Natural Gas (KOLD) are both linked to the Dow Jones-UBS Natural Gas Subindex, a benchmark that consists of natural gas futures contracts. BOIL will seek to deliver daily results that correspond to 200% of the change in the underlying index, while KOLD will target -200% of the daily returns of the benchmark. With the launch of the two new products ProShares now offers ten leveraged commodity funds, including ETFs linked to gold (UGL, GLL), silver (AGQ, ZSL), crude oil (UCO, SCO), and a broad basket of natural resource futures (UCD, CMD). “There has been strong demand for geared commodity ETFs, as investors have come to recognize the importance … See the full story here

Posted in Commodity ETFs, Energy, Natural Gas, New ETF Launches | Tagged , , , | Leave a comment

Market Vectors Files For Unconventional Oil & Gas ETF

This article originally appeared on Van Eck, the New York-based ETF issuer best known for its hard asset and country specific funds such as the Gold Miners ETF (GDX) and the Market Vectors Russia ETF (RSX), announced further expansion in the commodity space with plans for an ‘Unconventional Oil & Gas ETF’. If approved, the fund will mark the 41st product from the rapidly growing ETF giant and could help the company grow its assets in the oil space, one of the few areas in which Van Eck’s current lineup is lacking. While many details were not yet released in the SEC filing, expense ratio and ticker symbol are still unavailable, we have highlighted some of the key points from the filing below:

Posted in Commodity ETFs, Energy, Natural Gas, WTI | Leave a comment

A Closer Look At The Rare Earth Metal ETF (REMX)

2011 has been a pretty good year for commodities overall as a weakened dollar, supply concerns, and strong growth in emerging markets, have combined to keep many products in high demand. While key commodities such as corn, gold, and copper often dominate the spotlight, a group of metals known as ‘rare earths’ have truly been the star performers so far this year. In fact, some of the top metals in the group, such as Neodymium, Dysprosium, Yttrium, and Erbium, have put up gains that would make metals such as silver or gold’s performances in 2011 look down-right bearish. For example, of the four rare earths outlined above, the worst performer has put up a gain of ‘just’ 50% while several have seen their prices surge by over 200% in year-to-date terms, suggesting to many investors that a bull market is alive and well in some commodities despite the global economic malaise. 

Posted in Commodity ETFs, Exclusive, Rare Earth/Strategic Metals | Tagged , | 3 Comments

First Soybeans ETF Debuts: Teucrium Launches SOYB, CANE, WEAT

This article originally appeared on Teucrium, the company behind the first corn ETF and innovative energy commodity products, doubled the size of its product lineup on Monday with the launch of three new single-commodity funds. Two of the new additions to the fast-growing ETF lineup are first-to-market concepts, while a third will offer exposure to a soft commodity already covered by two iPath ETNs. The new Teucrium products are:

Posted in Agriculture, Commodity ETFs, Cotton, New ETF Launches, Soybeans, Sugar | Tagged , , , , , | Leave a comment

What BHP’s Earnings Report Says About Future Commodity Prices

Although earnings season may be over for the most part, a couple of key international firms still have to give their most recent updates. One of the most important firms in the world for commodity investors falling under this category of companies is undoubtedly BHP Billiton, the world’s biggest mining company. The Australian mining giant was put under the microscope yesterday, giving analysts its results and outlook for the future; neither of which disappointed investors.

Posted in Actionable Ideas, Commodity Producers, Exclusive, Industrial Metals, News and Current Events | Tagged , , | Leave a comment

Invest Like Jim Rogers With These Three Agriculture Stocks

In the world of commodity investing gurus, few can match the track record or fame of Jim Rogers. The investment legend is probably best known for his work with George Soros in creating the Quantum fund, but Rogers has been more active in the commodity space as of late with the creation of several indexes and a book on the subject as well. Lately, Jim Rogers has been on the precious metal bandwagon, pushing many investors to buy up these products to defend against further dollar weakness and fiat currency debasement by central bankers around the world. Yet, with gold hitting fresh highs on a seemingly weekly basis, Rogers has begun to advocate for investors to look to other corners of the investing world for gains in the future [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].

Posted in Actionable Ideas, Agriculture, Commodity Producers | Tagged , , , | 25 Comments

Daily Commodity Roundup: Sugar Continues Slide On Brazilian Crop, Orange Juice Rises On Florida Weather

American markets tumbled in Thursday trading as the second day of Fed Chairman Ben Bernanke’s testimony weighed on U.S. equities. In the report, Bernanke seemed to quell any notion of stimulus in the near future, suggesting that the economic situation will have to deteriorate further if another round of QE is in the cards. Industrial goods, services, and tech were all big losers on the day while health care and consumer companies managed to rise above the overall market to close the session. In international markets, Asia started the day mixed as Chinese and Indian benchmarks rose, but Australia and Japan both fell, leaving the region pretty much flat overall. European markets, however, were down across the board as pretty much all the benchmarks on the continent lost about 1% in the day’s trading. 

Posted in Agriculture, Commodity Futures, Daily Commodity Roundup, Exclusive, Orange Juice, Sugar | Tagged , | 1 Comment
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